Caroline Ellison pleads guilty to criminal charges connected to FTX founder Sam Bankman-Fried

Caroline Ellison, former CEO of Alameda Research, and Gary Wang, co-founder of FTX, have pleaded guilty to federal fraud charges and are cooperating with prosecutors as part of a criminal case against Alameda Research. Sam Bankman-Fried, former CEO of FTX;

Damian Williams, the U.S. Attorney for the Southern District of New York, made the announcement on Dec. 22, reiterating that the latest major development is unlikely to be the last. He also confirmed that the SBF is currently in the custody of the U.S. Federal Bureau of Investigation (FBI), where he will be extradited to U.S. authorities. He also used the statement to send a warning to anyone who might engage in misconduct at FTX or Alameda.

Meanwhile, the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have announced additional charges against the two, saying Ellison misrepresented the price of FTT, a coin issued by FTX.

Bankman-Fried has controlled the price of the cryptocurrency that FTX created, called FTT, by buying a large number of tokens to support the price of Alameda, one of the major companies that trade FTT, and using the token as collateral for loans received from other large crypto companies. For use in trading

Sanjay Wadhwa, the SEC's deputy director of law enforcement, said the three were involved in concealing important information from FTX investors, including FTT's value-added efforts, which served as collateral for the loan, which Alameda withdrew from FTX based on an undisclosed and unrestricted line of credit.

Source: www.nytimes.com